Sensex Ends Marginally Lower; Metal And Telecom Stocks Witness Selling

Indian share markets traded on a negative note throughout the day and recovered during the closing hours to end the day marginally lower. Sectoral indices ended on a mixed note with stocks in the capital goods sector and auto sector witnessing buying interest while telecom stocks and metal stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood lower by 53 points (down 0.1%) and the NSE Nifty closed down by 16 points (down 0.1%). The BSE Mid Cap index and the BSE Small Cap index ended the day on a flat note.

Speaking of the broader share markets, how has the Sensex performed compared to BSE-Midcap and BSE Smallcap during downturns?

Here's how this data looks like when plotted on a chart...

Large-Cap Index Outperformed in the Downturn

Clearly, in the face of such volatility, you need a balance of growth and safety.

The rupee was trading at 70.05 against the US$.

Asian stock markets finished on a negative note. As of the most recent closing prices, the Hang Seng was down by 0.9% and the Shanghai Composite was down by 0.5%. The Nikkei 225 was down 2.8%.

In the news from the finance sector, shares of financial companies including banks, non-banking financial companies (NBFC), housing finance companies (HFCs) and microfinance institutions were in focus today on the back of the Reserve Bank of India's (RBI) announcement to scale up liquidity infusion via purchase of government bonds.

Note that on Tuesday, the RBI announced bond buyback programme for the current year on expectations to raise bond prices and boost bank treasury profits when lenders need capital.

The RBI yesterday also announced that it will be purchasing Rs 500 billion of bonds in January in its open market operation (OMO).

The central bank has further earmarked an additional Rs 100 billion in OMO for December.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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